NC FUNDING - STORED VALUE CARD Program

December 12, 2002

FOR IMMEDIATE RELEASE:

FOR MORE INFORMATION:
Rob Wilcox 213 / 978-7209

NEIGHBORHOOD COUNCILS WILL RECEIVE UNPRECEDENTED FUNDING
HAHN AND CHICK UNVEIL INNOVATIVE NEIGHBORHOOD COUNCIL
STORED VALUE CARD

Los Angeles – Delivering on the voters' mandate for a far-reaching empowerment of neighborhoods, Mayor James Hahn and City Controller Laura Chick have announced that Neighborhood Councils will soon begin receiving significant City funding. Each qualified Neighborhood Council will receive the first installment of their annual $50,000 via a highly innovative system called the Neighborhood Council Stored Value Card.

"This is a significant move forward in an unprecedented shift of power from the corridors of City Hall to our neighborhoods. The dedication of public dollars to Neighborhood Councils underscores our commitment to enabling and empowering them. These councils are fast becoming a strong and important pulse running through our City. With the diligent work of the City's Controller, Treasurer, City Attorney and the Department of Neighborhood Empowerment, our Neighborhood Councils may begin receiving their funds soon," said Mayor James Hahn.

"There were two goals that guided this process: How can we get the Neighborhood Councils their monies in an expedient and flexible way? And how can we best ensure that the public dollars are protected? The Neighborhood Council Funding Program and the Stored Value Card are the result of Neighborhood Councils, City leaders and the private sector working together and using common sense and ingenuity in creating a funding process which I believe will be the Gold Standard for others to follow," said City Controller Laura Chick.

The first funding installment for each Neighborhood Council is $12,500, which they will receive every three months. Councils can access their funds following a training process by the City for their Council Treasurer. The training sessions will be available as soon as next week with the Stored Value Cards issued the following week.

Each Neighborhood Council Stored Value Card is similar to a bank ATM debit card and has built in safeguards with certain purchases electronically prohibited. In addition, the cards can be used to withdraw limited amounts of cash. This mechanism is made possible through Bank of America which administers the Cards. The City has also created an expedited check approval process to quickly pay vendors that do not accept the card.

For more information on the funding process, neighborhood councils can contact the Department of Neighborhood Empowerment at 213 / 485-1360.